Stone Island: Product Innovation and Market Positioning as Drivers of Value Creation

Abstract

Established in 1982, Stone Island is a menswear brand entirely owned by Sportswear Company S.p.A., an Italian family business operating in the premium outdoor apparel sector. A total of 65% of the brand’s revenue comes from 48 countries, and it has been growing in revenue and profitability by leveraging a unique set of capabilities in research and development, fabric and product innovation. Stone Island has a loyal customer base, putting it in a unique market position still unchallenged by competitors. The brand’s innovation of the fabric production process and its selection of high-quality raw materials are the pillars of its value among consumers and represent features that distinguish the brand and its products. This case study focuses on Stone Island’s product innovation strategies and its subsequent distinctive market position based on high product quality and price, strong brand image and reputation for innovation. This case study further examines managerial decisions concerning marketing strategies and development of the North American market, as well as defines future long-term strategies.